Unformatted text preview: ( total profit obtained with max price increase is 196 + 7*12 = 280.)
2a. The optimal basic solution tells us to produce only acids A and B to amount to total profit of $9750. This
is composed of 22.5 units produced of acid A selling at $300 profit per unit and 15 units produced of acid B
selling at $200 profit per unit.
2b. C_b*A_b^1 = (300,200) ((0.25,0.5) (0.375, 0.25)) = (25, 62.5)
The shadow prices for chemical 1 is $25, and for chemical 2 is $62.5. We also verify this by seeing that the
ith slack variable is equal to the negative of t...
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This document was uploaded on 02/22/2014 for the course CO 250 at University of Waterloo, Waterloo.
 Fall '13

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